Larsen & Toubro (L&T) shares hit an all-time high in intraday trade on Friday on the back of a continued rise in the stock price over the last two sessions amid strong order prospects. The share price of the engineering and construction major has surged as much as 3.5% in two trading days to touch a record high of ₹2,095 on the BSE, while the benchmark Sensex rose 1% during this period.
On Friday, L&T share price opened a tad higher at ₹2,055, against the previous closing price of ₹2,054.20 on the BSE. Extending opening gains, the stock gained 2% to hit a high of ₹2,095 during the session so far. The market capitalisation (m-cap) of the multinational conglomerate climbed to ₹2.91 lakh crore. On the volume front, there was a surge in buying activity as 0.8 lakh shares changed hands over the counter on the BSE against the two-week average volume of 0.49 lakh stocks.
L&T shares have surged 44% in the last five months, from its 52-week low of ₹1,456.80 on June 20, 2022. The Sensex heavyweight has risen 12% in the last one month, while it jumped 31.5% in the six month period. In the past one month, the counter climbed 6%, while it added nearly 3% in a week.
The stock price gained momentum in the last two days after the infrastructure major bagged an order worth ₹1,000-2,500 crore from Greenko Group, a renewable energy company, for the development of an off-stream pumped storage project in Madhya Pradesh.
“The Heavy Civil Infrastructure Business of Larsen & Toubro has secured an order from the prestigious Greenko group, one of the world’s leading renewable energy companies, for development of an off stream pumped storage project in Madhya Pradesh,” L&T said in an exchange filing on Thursday.
The Civil and Hydromechanical works of the project will be executed through a consortium led by Larsen L&T, under a stringent timeline of 30 months. Upon completion, the project will be one of the largest clean energy projects of its kind in India, it said.
“Securing this pumped storage system order reiterates Larsen & Toubro’s commitment to bolster India’s clean energy sector and a step forward towards the country’s goal of being Carbon Neutral,” as per the release.
In the recently concluded September quarter, L&T reported healthy quarterly performance with consolidated revenue and profit registering a double-digit growth, aided by accelerated execution in the infrastructure segment.
On a cumulative basis, the order inflow for the half-year ended September 30, 2022, stood at ₹93,720 crore, registering a growth of 36% over the corresponding period of the previous year. International orders at ₹35,184 crore during the half-year constituted 38% of the total. The consolidated order book of the group was at ₹372,381 crore as on September 30, 2022, with international orders having a share of 28%.
For Q2 FY23, the engineering major posted a consolidated net profit of ₹2,229 crore for the quarter ended September, registering a growth of 23% over the corresponding period of the previous year. The consolidated revenue rose 23% YoY to ₹42,763 crore with execution tailwinds in the infrastructure projects segment and sustained growth momentum in the IT&TS portfolio. All the major segments reported higher profits, led by the IT&TS and Financial Services businesses.